HC Deb 19 April 1955 vol 540 cc8-9
15. Mr. H. Hynd

asked the Chancellor of the Exchequer whether, having regard to the recent increase in the Bank Rate, with its resultant effect on the borrowing rates charged by the Public Works Loan Board, he will afford more favourable terms to local authorities for the purpose of carrying out essential types of services.

Mr. H. Brooke

No, Sir.

Mr. Hynd

Does the hon. Gentleman appreciate that many local authorities entered into quite considerable financial commitments for essential public works before the Chancellor suddenly decided to give higher rates of interest to the moneylenders'? Does the hon. Gentleman appreciate that those local authorities are in real difficulties and expect some help?

Mr. Brooke

This Government is following precisely the course that was laid down by the late Sir Stafford Cripps some five years ago, when he said that the rates of interest charged to local authorities must correspond broadly to the Government's borrowing rates for comparable periods.